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China can no longer save world

Chinese consumers have no money to keep growth going

If the world was looking for China to save it, the actions of Chinese leaders in the past few weeks suggest they intend to save their own economy first.

China was the greatest contributor to global growth last year - a fitting achievement as the country approached the 30th anniversary of its economic reforms and prepared for the glory of the 2008 Olympic Games.

But this has been a year of tragedy and turbulence. An earthquake took 68,000 lives and will cost billions in reconstruction. The uprising in Tibet and international criticism of the regime's human-rights record soured the Olympics and damaged China's image.

Its leaders, preoccupied with stoking up patriotic pride, failed to grasp the impact of the financial crisis. Even before the Olympic flags came down, stock and property markets had plunged, while exports were stumbling. In the past three months, the export sector has tumbled into an abyss.